factual

Does Del Taco have the right to communicate with Ceridian on behalf of the Del Taco franchisee regarding the Platform?

Del_Taco Franchise · 2025 FDD

Answer from 2025 FDD Document

Del Taco shall have the right, but not the obligation, to (1) collect any and all fees owing from Franchisee to Ceridian, for transmittal to Ceridian or its designees on behalf of Franchisee, and (2) communicate with Ceridian on behalf of Franchisee regarding the Platform and the Program Usage Agreement.

Source: Item 23 — RECEIPTS (FDD pages 59–325)

What This Means (2025 FDD)

According to Del Taco's 2025 Franchise Disclosure Document, Del Taco has the right, but not the obligation, to communicate with Ceridian on behalf of its franchisees regarding the Platform and the Program Usage Agreement. The Platform refers to certain software modules and services provided by Ceridian HCM, Inc. intended to assist Del Taco and its franchisees in performing certain human resource functions. These functions include payroll, benefits, time and attendance, scheduling, compensation management, performance management, document management, recruiting, dashboards, succession planning, unemployment compensation, employment/salary verification, and education.

This means that Del Taco can act as an intermediary between the franchisee and Ceridian, which could streamline communication and problem-solving related to the Platform. However, Del Taco is not required to do so. The franchisee is also bound by the Platform Usage Agreement and all rules, regulations, standards, specifications, and procedures designated by Ceridian.

Del Taco also has the right to designate an individual or entity, potentially an employee of Del Taco, to serve as an administrator of the Platform on behalf of the franchisee. This administrator would have access to the franchisee's computer system, including all files and data regarding the franchisee's use of the Platform, deemed necessary to perform their functions. Del Taco does not have a fiduciary obligation to the franchisee and can exercise its business judgment regarding these rights.

Furthermore, Del Taco can bring, initiate, and resolve any claim, action, or dispute between the franchisee and Ceridian on behalf of the franchisee, and can settle disputes requiring payment by the franchisee of up to $10,000 without the franchisee's prior written consent. However, Del Taco is not obligated to do so and can withdraw from any such action upon notice to the franchisee without liability. The franchisee is required to indemnify and reimburse Del Taco for all costs and expenses incurred in connection with these actions, including legal fees and court costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.